Buying a home for rental, flip, or primary residence requires a few things to look for when conducting a final walk-through.
As an investor and realtor, I’ve seen a few tricks by sellers. In this article, I’ll give you my perspective on what to look for when conducting a final walk-through.
What to look for in a walk-through while buying a property
As a Realtor, I have a fiduciary responsibility to my buyer. I need to be the eyes and ears of the transaction. I also need to understand what the seller wants. It can be difficult to navigate, but as long as the best interests of the client are represented, the realtor’s job is done.
Let’s discuss what the buyer should look for while doing the final walk-through. I have noted seven things in particular. These are not in order of importance. However, all items can determine the likelihood of whether an acquisition will be disastrous or profitable.
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Infection
An infestation can be as innocuous as ants or as innocuous as bedbugs or termites. Treating an infestation may be as simple as visiting your local home supply store. But in the worst case, this type of problem can cost thousands to fix. I highly recommend being proactive and completing an inspection.
In the past, I was shocked when I walked over to a potential turn and found the house to be infested with bees. The photo below does not convey the magnitude of the bee colony and hive, which has engulfed the entire interior wall.
water damage
Being aware of water damage can save thousands of lives. It’s important to look in areas where the water may be clear, especially if there’s signs of old roofing.
Check the ceiling for water spots. Other key areas to check are around the water heater and under the sink.
In areas where properties have basements, I suggest looking for moisture around baseboards and water lines on drywall or block walls.
asbestos, mold, and lead-based paint
In most states, if not all, these are disclosure items. This means that, as per the law, if the seller has knowledge or evidence of any of these three issues, he must disclose the same to the buyer.
In the past, a real estate transaction hinged on a “buyer beware” basis. With the new state regulations, there is an effort to protect the buyer. Disposal of asbestos, mold and lead paint must meet certain environmental disposal regulations. Therefore, the fees associated with remediation and disposal are higher than conventional disposal due to carcinogens in the material.
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plumbing and electrical
Plumbing and electrical are probably the most important components to inspect. Using a professional home inspector and having a contractor review the system is essential. In older homes, cast iron piping is something that needs to be replaced for plumbing functionality.
Also, in older homes, knob and tube electrical or bus fuses are problematic. Rewiring or upgrading electrical will cost thousands of dollars, which can quickly blow through a rehab budget.
For the above reasons, these seven items should be evaluated before buying a property. But there are many other things, such as the roof, foundation and other structural issues, that are also important to check. For this reason, my suggestion to my clients is to always have a professional home inspection done.
Have I missed any items that should be inspected?
List them in the comments section below.
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
